Mortgage brokers are “highly valued” by Aussie property investors, new research has found, with the majority securing their last loan through a broker and many planning to in future. 

The second annual Property Investment Professionals of Australia (PIPA) Property Investor Sentiment Survey of more than 1,000 property investors found that mortgage brokers remain a key source of finance for property investors.

According to the survey, 65 per cent of investors secured their last investment loan through a broker, and 71 per cent plan to secure their next investment loan through a broker.

PIPA chair Ben Kingsley commented: “In the complex borrowing environment we are now facing, brokers continue to play a key role as providers of finance to investors. They tend to better understand the investment lending landscape and offer great choice to investors.”

Additionally, the survey found that most (80 per cent) of investors would choose or refinance with a lender offering an interest-only repayment period, and 66 per cent of investors said they would choose or refinance with a lender if it offered the same interest rates for investors as owner-occupiers.

The survey also showed that despite tightening investor lending policies, more than 70 per cent of respondents think that now is a good time to invest in property, up five percentage points on last year.

While 32 per cent of investors said that recent changes to lenders’ investment policies have affected their ability to secure finance, 58 per cent said that they are still looking to buy a property in the next six to 12 months.

The survey also found that 72 per cent of investors are not worried about the potential removal of negative gearing, and further, only 2 per cent consider the current negative gearing concessions to be a key attraction of real estate investment.

PIPA chair Ben Kingsley commented: “Most property investors are looking past short-term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income.”

“Importantly, most investors are not speculating on quick gains in a low interest rate environment,” he added.

  

16 September 2016
The Adviser:
http://www.theadviser.com.au/breaking-news/35051-brokers-most-important-source-of-finance-for-investors?utm_source=TheAdviser&utm_campaign=16_09_16&utm_medium=email&utm_content=2&mc_cid=60a4a66676&mc_eid=9ab898546f